MNI BRIEF: Fed's Bullard Sees 'More Persistent' Inflation

St. Louis Fed President James Bullard said Wednesday he'd like to see the Fed taper bond buys sooner rather than later because inflation risks are greater than many assume. "My idea is to make small moves today, a little bit earlier, and faster on the taper. If we had to, we'd be better positioned to combat upside inflation in 2022," Bullard told the Washington Post.

"We do think it's temporary and that the inflation shock will go away as the economy begins to reopen but I think it's going to be more persistent than what most people expect," Bullard said, citing the prospect for core inflation to stay in the 3% to 3.5% range this year and next.

Former Fed officials told MNI this week Bullard is likely an outlier and the Fed will wait until later this year to taper.